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TikTok Goes Down Again in the U.S. as Oracle (ORCL) Suffers Its Second Major Outage Since Sale

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TikTok’s U.S. service faced major disruptions again this week following Oracle’s data center outage, preventing content creators from posting.

TikTok Goes Down Again in the U.S. as Oracle (ORCL) Suffers Its Second Major Outage Since Sale

TikTok, a social media app owned by ByteDance, encountered service disruptions in the United States (U.S.) on March 3, 2026, primarily affecting content posting. The platform attributed the issue to an outage at an Oracle (ORCL) data center. 

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This marks the second major outage affecting TikTok’s U.S. operations since ByteDance sold its U.S. business to a joint venture with Oracle.

Oracle Acknowledges Data Center Disruption Affecting TikTok

TikTok’s USDS Joint Venture confirmed via X that “an issue with an Oracle data center is impacting some parts of the TikTok U.S. user experience,” with creators potentially facing temporary posting delays while Oracle resolves the problem. Oracle acknowledged the outage affecting its Virginia facility, leading to connection timeouts, errors, and increased latency for cloud customers in recent hours.

Reports on Downdetector showed spikes in complaints, with thousands of users noting issues in major cities. This follows a prior outage in late January or early February 2026, also tied to Oracle infrastructure, which was resolved after several days and was initially attributed to a weather-related power loss.

Repeated Outages Highlight Infrastructure Challenges After Sell-off

TikTok restructured its U.S. operations earlier in 2026, with Oracle holding a significant stake to manage data storage and comply with U.S. regulations following ByteDance’s divestiture. The prior outage raised concerns over reliability during the transition period.

Users have reported repeated disruptions that affect platform stability and creator productivity, potentially influencing sentiment toward the new ownership structure. This latest incident underscores ongoing challenges in maintaining uninterrupted service for TikTok’s U.S. user base of over 170 million.

Algorithm Centralization Concerns Surface

Despite owning a percentage of TikTok, Oracle does not control the app’s recommendation algorithm. Under the 2026 TikTok USDS Joint Venture agreement, Oracle’s role is limited to hosting and managing user data storage and cloud infrastructure through Project Texas, to ensure data remains within the United States and separate from ByteDance systems.

The content recommendation algorithm continues to be developed and operated by TikTok’s product and engineering teams, with ByteDance, the private company behind the app, retaining oversight of core algorithmic technology.

Is Oracle a Good Stock to Buy?

According to TipRanks analysts’ forecasts, ORCL is a “Strong Buy” today. The stock is currently priced at approximately $152, with an average price target of $278.54, reflecting a staggering upside potential of 82.55%.

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